113th Year, 2nd Issue Thursday, August 23, 2001 Sparta, North Carolina

Bristol Compressors will close in Sparta

By COBY LaRUE
Staff

Bristol Compressors announced last Thursday afternoon that it will be closing its Sparta manufacturing facility in 2002.

Some of the company's workers will be laid off permanently in February, while others in the housing and resistance weld departments will be laid off permanently in July.

The company's 180,000 square-foot facility was built in 1995 and is valued at $24 million, including the land and equipment. A portion of that structure was funded using an $8.5 million incentive agreement with the state, county and town for site preparation and other facets of the company's location here.

The fate of the remaining years of the incentive agreement is as of yet unclear; however, one thing is clear: Bristol Compressors is the sole owner of the manufacturing facility and the land it is located on and has yet to decide what will become of it.

The fate of the building may well prove to be a bargaining chip when local officials meet with company officials to discuss the now-broken incentive contract. County Manager Don Adams said,"We're basically investigating all aspects of the incentive package."

However, Bristol officials have indicated that they have yet to begin marketing the building for sale. "It's too early for us to have done anything on that," Bristol spokesman Dennis Custance said. However, he indicated that Bristol will likely try to sell the facility in the future.

The company, which is a wholly-owned subsidiary of York Inter-national Corporation, employs about 440 people here, not including the peripheral jobs that could be affected by the closing, such as Andrews Trucking, Burns Security, Triad Packaging, Northwest Foodservice and other supporting companies (such as uniform deliveries and rug services).

Custance called the closing "very unfortunate."

Custance said, "This decision was only made in the last couple of weeks. It's an unfortunate thing to have happen, believe me. Bristol is going to be as supportive as possible."

Custance was the official spokesperson for the company, to whom all local inquiries were diverted. A press release was delivered by Bristol Personnel Manager Jim Halsey and another Bristol employee on Thursday afternoon. They declined to comment on the closing, referring all questions to Custance.

Bristol's Sparta plant, which opened in 1995, is slated to close down permanently in 2002, company officials announced last Thursday.

The Bristol Compressors Deal
Compiled by by Coby LaRue; information taken from incentive agreement)

Incentives total $8.5 Million:

  • 50 acres of land in the county industrial park valued at $300,000;
  • $800,000 for use in grading, erosion control and parking lot construction;
  • Annual payments of $400,000 per year ($4 million), partially from new "wheel tax" of $10 per vehicle registered in the county. Tax began Jan. 1, 1994;
  • Alleghany Commitment for Tomorrow, a group of businesses and individuals, committed $600,000 cash over 10 years;
  • Town of Sparta gave $600,000 cash;
  • Blue Ridge Electric Membership Corporation gave $600,000 cash;
  • Skyline Telephone Membership Corporation gave $600,000 cash;
  • State of North Carolina gave $1 million - $600,000 cash, with $400,000 more paid the company since it created more jobs than planned and created them more quickly.

    Bristol offered in return:

  • To pay at least $2.3 million over 10 years in property-tax revenue to the county;
  • To pay $800,000 in property tax to the town over 10 years;
  • Potential for 50 new businesses such as restaurants, dry cleaners and service stations that could raise $58,000 per year in tax revenues;
  • New families moving into the county to spend $1.2 million on housing;
  • To pay $2.4 million in new sales tax revenue over 10 years;
  • Have payroll equal to $12.5 million per year once full employment of 750 was reached;
  • Related jobs created as a result of Bristol's location to have a payroll of $4.2 million per year by 10th year.

    Infrastructure valued at $10.3 million

  • U.S. 21(phase I and II) - from Virginia to top of Twin Oaks Mountain, $6.7 million total paid by state;
  • Sparta Parkway, $2 million total cost paid by state;
  • Town water and sewer improvements, $1.6 million total cost paid by state.

    Get the rest of this article in this week's issue of the Alleghany News!

    Back